Re: Insurance cluster F#%! (Long) - Posted by JPiper
Posted by JPiper on February 19, 2001 at 16:08:53:
First, just a general rule of thumb. Do not allow others to control your deal. In this case, the attorney doesn?t make a call to the insurance agent. Every time you let loose of a detail in your deal, that detail then becomes a possible problem somewhere down the road. And that?s the lesson here.
Now, your current situation. Your new policy is going to alert the lender that something has changed. Further, the name on the insurance is not going to read the same as the name on the loan. They hate that. Even if they wanted to look past this?.they are going to HATE the whole idea of the insurance being different than the loan. This is going to prompt a letter from the lender about your insurance?.perhaps stating that they expect new insurance, perhaps stating that they are going to put forced insurance on the property. Or perhaps it will trigger them to checking title, at which time they will see that the deed has been transferred, and will have to make a decision on whether to call the loan under the DOS.
If I were you I would do nothing right now. I would simply go about repairing the property as rapidly as possible, market the property, in short, move the direction you had planned on to begin with.
If you had planned to refi, then I would go ahead and start that now. But if you hadn?t planned to at this moment?don?t. It will be soon enough when you will hear something. It might be educational for you to play the game a little here?.it will be an excellent course for you that is coming free with your deal. Next time some one asks one of these DOS questions you?ll be an expert.
By the way, if you had planned to refi it immediately, I would have done it exactly as you did. Otherwise, I would have used a trust.